Over the years, India has been losing out to China in securing oil and gas assets in Africa. As 22 African oil ministers attended the 4th India Africa Hydrocarbon Conference in New Delhi this week, the focus is on sourcing more of India’s petroleum needs from the region. This includes regular imports, acquiring equity oil, and setting up refineries and pipelines in the region.
That’s important since India accounts for just 1% of the world petroleum resources. However, Africa has 14.5% of the world’s oil and 13.2% of gas reserves. It also accounts for 15-20% of India’s crude supplies. State-owned ONGC Videsh Ltd (OVL) alone has invested $7-8 billion in the region. Indian oil companies led by Bharat Petroleum and Oil India are now investing in the giant Rovuma-1 gasfield in Mozambique. Over the next few years, expect more Indian investment in the region’s oil and gas business.
